Bitcoin Is Ending Closer to the $100,000 Mark Once Again

Bitcoin is ending closer to the $100,000 mark once again, after reaching its highest price since late February, as investor sentiment picks up

Bitcoin price is getting closer to the $100,000 mark once again after reaching its highest price since late February as investor sentiment improves across financial markets.

The cryptocurrency has come under immense pressure in recent times, dropping as much as 30% from a peak of nearly $109,000 hit on January 20. The downturn was largely linked to Trump's tariff policies, which also impacted the stock market and the digital asset space.

However, Bitcoin has since rebounded, rising 3.1% to $97,483, its highest level since February 21. The digital asset last hit $100,000 on February 7. Smaller cryptocurrencies, Dogecoin and Ether also saw strong gains, with Dogecoin up 4.8% and Ether gaining 3.3%.

Expectant investors say the market recovery is being driven by surging activities in spot trading that offset the decreasing demand for derivative assets used for leverage. Traders are now focusing more on momentum-based trading techniques rather than the macroeconomic elements, inflation and tariffs, which used to influence Bitcoin price activity during the first part of this year.

Non-traditional bitcoin and ether-based exchange-traded funds (ETFs) saw an inflow of more than $3.2 billion from investors in the past week. IBIT, the iShares Bitcoin Trust ETF, saw an inflow of $1.5 billion, making it the biggest inflow of the year.

The market demand for options has increased drastically as investors hold the most options contracts with a $100,000 strike price. The persistent market comes despite the ongoing volatility as the liquidation levels of both long-term and short-term crypto positions remain minimal.

The market is now gravitating towards momentum-based trading due to spot demand, according to Chris Newhouse, research director at DeFi trading firm Ergonia. Bitcoin exhibits two different macroeconomic patterns where it acts like gold or shows characteristics of equities. The price of Bitcoin is increasingly being influenced by short-term market momentum, which is driven by demand in the spot market.

The market struggled after Trump announced his tariffs last month as investors displayed risk-off sentiment, leading to massive liquidations of crypto futures. But the current trend shows that there is renewed confidence in the digital asset space.